MKS Instruments stock price target reiterated at $120 by TD Cowen

TD Cowen maintained its Buy rating and $120.00 price target on MKS Instruments (NASDAQ:MKSI) on Monday. According to InvestingPro data, the stock currently trades at $93.51, suggesting significant upside potential. The research firm cited the company's positioning to benefit from long-term semiconductor industry growth trends, with MKSI showing a beta of 1.83, indicating higher market sensitivity than average.

The firm highlighted MKSI's potential to capitalize on secular themes in semiconductors, AI data centers, and advanced packaging through its chemistry business. TD Cowen specifically mentioned growth opportunities in multi-layer PCB advanced packaging, substrate processing, and increasing semiconductor etch and deposition intensity.

TD Cowen described MKSI as its "top smidcap idea," noting the stock appears undervalued at 12 times forward price-to-earnings ratio compared to industry peers. InvestingPro analysis confirms this view, with the stock trading at an attractive PEG ratio of 0.24, suggesting undervaluation relative to growth prospects. The firm pointed to MKSI's strong free cash flow and ongoing debt reduction efforts as factors that could potentially warrant a higher multiple. For deeper insights into MKSI's valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The research firm emphasized MKSI's solid fundamentals, specifically mentioning the company's cost management strategies and debt reduction initiatives. These operational strengths position the company favorably as it approaches multiple growth vectors, according to TD Cowen's analysis.

MKS Instruments provides instruments, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes in the semiconductor and advanced manufacturing industries. The company has maintained dividend payments for 15 consecutive years, demonstrating strong financial stability with a healthy current ratio of 3.11 and trailing twelve-month EBITDA of $879 million.

In other recent news, MKS Instruments Inc. reported a strong performance for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved earnings per share of $1.71, exceeding the expected $1.44, and reported revenue of $936 million, which was higher than the forecasted $915.12 million. Additionally, MKS Instruments announced a quarterly cash dividend of $0.22 per share, scheduled for distribution on June 6, 2025. The company also rebranded itself as MKS Inc., a move approved by shareholders to reflect its growth and diversification beyond industrial instruments. In terms of executive changes, James A. Schreiner will return to his previous role as Executive Vice President & Chief Operating Officer, while David P. Henry will take over as Executive Vice President, Global Strategic Marketing, and General Manager of the Materials Solutions Division. The company maintains a robust liquidity position with $1.3 billion available, despite a gross debt of $4.6 billion. MKS Instruments continues to focus on cost management and operational efficiency, contributing to its positive results. Analysts from firms such as KeyBanc Capital Markets have shown interest in the company's outlook, particularly regarding the semiconductor market recovery.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.